UNITED STATES v. BCCI HOLDINGS

February 27, 1996

UNITED STATES OF AMERICA
v.
BCCI HOLDINGS (LUXEMBOURG), S.A., BANK OF CREDIT AND COMMERCE INTERNATIONAL, S.A., BANK OF CREDIT AND COMMERCE INTERNATIONAL (OVERSEAS) LIMITED, AND INTERNATIONAL CREDIT AND INVESTMENT COMPANY (OVERSEAS) LIMITED, Defendants.

Presently pending is the United States' Motion to Dismiss ("Motion to Dismiss") Richard C. Eline's Petition to be Heard in 3rd Party Claims of Property Seized by the United States of America under 18 U.S.C. § 1963(l) ("L-Claim"). The sole ground of the Motion to Dismiss is the petitioner's failure to comply with the provisions of 18 U.S.C. § 1963(l)(3).

For the reasons expressed below, the Motion to Dismiss will be granted.

Paragraph 1(e) of the Order provides that the corporate defendants named in this action shall forfeit to the United States ownership interests in all property located in the United States, including, without limitation, real property and all tangible and intangible personal property, however held, whether subsequently identified, determined or discovered in the course of the ongoing liquidation proceedings described therein or otherwise identified, determined, or discovered in any manner at any time, but not property that may be brought into the United States by or on behalf of Court-Appointed Fiduciaries of BCCI in the course of the management or disbursement of the liquidation estates as described in the plea agreement.

Attached to the First Order of Forfeiture was a listing of BCCI accounts, with corresponding numbers, names, and approximate balances, which the United States Marshals Service was directed to seize forthwith. Because the government was unable to verify certain information concerning additional forfeitable accounts at the time the Order of Forfeiture was entered, the Court issued a First Supplemental Order on January 31, 1992, which directed immediate seizure of the specific assets listed therein. The Court has since amended the Order of Forfeiture to include additional assets, including property set forth in the Second and Third Supplemental Lists of Forfeited Property. See Order of Forfeiture of July 29, 1992 (Second Order of Forfeiture); Order of Forfeiture of August 19, 1993 (Third Order of Forfeiture).

The Third Order of Forfeiture is relevant to the petitioner's L-Claim presently before the Court. Attached to the Third Order of Forfeiture, was a Third Supplemental List of Forfeited Property aggregating $ 101,302,465.54. Included among the accounts seized was an account of Oppenheimer & Co. in New York, "account number 033-35263 (U.S. Treasury Notes) and 033-35263," which was held in the name of North American Investment and Finance, Ltd. ("NAIF"), totaling $ 6,122,965.17.

In compliance with 18 U.S.C. § 1963(l)(1) and to inform third parties of their potential rights to seek recovery of assets declared forfeited in the Third Order of Forfeiture, the United States published notice of the Order of Forfeiture, as amended, during the period between September 3, 1993, and September 27, 1993 in eleven major newspapers including the Wall Street Journal, the New York Times, the Chicago Tribune, the Los Angeles Daily Journal, the Washington Post, and the International Herald Tribune. See United States' Notice to the Court of the government's compliance with Order of August 19, 1993, filed September 21, 1993. In addition, personal notice was sent to over 523 persons and entities. Id.

On September 23, 1993, the petitioner filed a handwritten Petition for Hearing, which requested that "all accounts listed in this petition be awarded to petitioner or designated representative." The petition identified Account # 033-35263 (U.S. Treasury notes) and Account # 033-35263 of Oppenheimer & Co. of New York and stated the following as the reasons that the petition should be granted:

At this time, Petitioner wishes to present reasons that the Court should grant the property (sic) in question, I also know that the court has attempted to forfeit and seize at will, most of the money from BCCI, Inc. to allegedly help pay for a non-existent deficit by careless and "new" types of administrations.

I am not saying that if illegal activity had taken place, there is no reason for the government to seize this, But in this case, the U.S. government began seizing property, after Bankruptcy proceedings had already been filed, indicating that some U.S. government abuse had to be remedied, and the total seizure of BCCI Holdings Inc. began.

Petition for Hearing, supra, at 3-4.

As legal argument, without offering any facts or otherwise identifying the nature of his allegations, the petitioner alleges, among other ...

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